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Reyes Buying Bay Area Beverage

Dear Client:

Reyes strikes again in Northern California.

The massive wholesaler has just announced a deal to acquire substantially all of the assets of Bay Area Beverage Company, a blue/silver/gold/green house, headed by president TJ Louderback in Richmond, California.

The deal will add “approximately 8 million cases and nearly 3,000 new customer accounts” to Reyes’ operations, per release. Bay Area Beverage’s house is stocked too. In addition to the Molson Coors, Constellation, and Heineken USA portfolios, Bay Area Beverage also carries Mike’s/White Claw, Diageo Beer Co. and major crafts like Sam Adams/Dogfish Head, Lagunitas, Brooklyn Brewery, New Belgium, and Firestone Walker/Boulevard.

“We have always been extremely impressed with Bay Area Beverage as a company,” Tom Reyes, president of Reyes Beer Division West, said in the release. “We are very pleased about this opportunity and are looking forward to a smooth transition and combining our team with theirs in this territory.”

For his part, Bay Area Beverage president TJ Louderback reminded that his company has “been a leading distributor in our service area for some of the most important and exciting domestic, international and craft brands.” TJ added that “the Reyes family is an industry leader and I am confident they will continue to build on the success our team has achieved over the years.”

The transaction is expected to close in June of this year, and at that point Bay Area Beverage will roll into Reyes’ new subsidiary in Northern California, Golden Brands.

It’s hard to believe that less than a year ago, Reyes wasn’t doing any business in Northern California. Now, their new subsidiary, Golden Brands, is on the verge of becoming a 36 million case operation in the area.

Recall, Reyes’ move up north began last summer with the acquisition of DBI Beverage Inc.’s beverage distribution business (26ish million cases). That purchase resulted in the formation of Reyes’ NorCal subsidiary, Golden Brands.

Then in early March this year, Reyes’ Golden Brands cut a deal to “acquire certain distribution rights” of Saccani Distributing in Sacramento, adding about 1.5 million cases to its operations.

Now comes the deal with Bay Area Beverage, tacking on another 8 million cases.

With this latest acquisition, we estimate that Reyes is now distributing over 130 million cases in California alone.

Stay tuned.

Until tomorrow,

Harry, Jenn and Jordan

“The more passions and desires one has, the more ways one has of being happy.” – Charlotte-Catherine